Environmental management and firm performance in the hotel sector

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ENVIRONMENTAL MANAGEMENT AND FIRM PERFORMANCE IN HOTELS
1. PURPOSE 2. DATA & METHODOLOGY
The environment is being used by firms as a
differentiating element to increase market
competitiveness. This behaviour, which is driven by
changes in demand, highlights the need to
understand the relationship between the hotels’
commitment to the environment and its outcome in
terms
of
economic
performance
.
In
this
sense,
We chose a methodology and a set of variables similar to those used by
Alvarez-Gil et al. (1999 & 2001) and Claver-Cortes et al. (2006 & 2007) but
we also used additional information available in our database which includes
representative parameters from 216 establishments rated from 3 to 5 star.
These parameters were obtained from semi-structured questionnaires given
to the hotel managers by the researchers, and the economic data was
obtained directly via those questionnaires and from the annual accounts filed
by
firms
in
the
Mercantile
Registry
.
The
position
of
the
establishments
toward
Sánchez-Ollero, J.L., García-Pozo, A. and Campos-Soria, J.A.
University of Malaga, Department of Applied Economics, Faculty of Tourism, Spain
jlsanchez@uma.es;alegarcia@uma.es ; jacampos@uma.es
4. CONCLUSIONS
terms
of
economic
performance
.
In
this
sense,
environmental sustainability has an impact on the
competitive positioning of firms, generating new
markets for environmentally benign products and a
new field of academic studies. Our work has two
main aims: to classify the hotels in Andalusia into
strategic groups in terms of how they use the
variable environment as a factor in competitive
positioning, and to assess the economic impact of
the strategy adopted by the analysed
establishments.
by
firms
in
the
Mercantile
Registry
.
The
position
of
the
establishments
toward
the environment was assessed using the labels awarded to the hotel by
qualified certification bodies, such as ISO 14001, EMAS, and Biosphere, and
other specific labels either awarded by hotel chains or public administration
bodies, such as the "Q-verde".
Eight questions in the questionnaires were used to evaluate the
environmental strategies and for improving the interpretation of the results,
some descriptive variables were included. Finally, objective measurements
were selected to assess the economic consequences of implementing
environmental strategies and to compare the different groups.
In order to classify the hotels in terms of the environmental strategies
implemented, a non-hierarchical cluster analysis was performed assuming
that each establishment is represented by a vector that includes the values
of the variables outlined above. Thus, these variables provide the data
necessary to generate the aggregation variable to group the establishments.
3. RESULTS & FINDINGS
I. We demonstrated the
existence of four strategic
groups based on their
position toward the
environment
and
a
Table 1. Means and statistical tests for all groups Proactive (n=15) Accommodative (n=39) Defensive (n=45) Reactive (n=117)
The establishment quantifies environmental costs and savings 4.50 4.12 2.01 1.36
The establishment provides employees with traini ng on environmental issues 4.21 3.75 2.27 1.44
The establishment applies "green purchasing” policies 3.37 2.96 1.24 1.10
The variable environment is used in marketing strategies and campaigns 3.71 3.55 2.02 1.32
The establishment applies energy and water saving measures 4.52 4.15 3.85 3.54
The establishment recycles waste 4.33 3.63 3.28 3.15
The establishment encourages environmental awareness among employees through meetings and advice 3.21 2.91 1.40 1.19
The environment variable is actively taken into account by the establishment or chain in relation to CSR 3.45 2.73 1.24 1.13
Hotel category (stars) 3.84 4.05 3.75 3.42
Number of rooms
103.27
205.21
152.27
93.19
environment
and
a
positive association
between proactive
environmental strategies
and the economic
performance of hotels in
Andalusia;
II. Our results show that
strategies that make
clients aware of the
environmental measures
implemented by hotels
may improve occupancy
levels, and increase sales
and the added value
generated by the
establishment.
103.27
205.21
152.27
93.19
The establishment is part of a chain 0.71 0.85 0.73 0.48
The establishment is a family business 0.54 0.67 0.59 0.63
Establishment located on the coast 0.21 0.38 0.43 0.34
Establishment located inland 0.58 0.08 0.05 0.23
Publicly owned hotels 0.19 0.03 0.02 0.00
Establishment managed under leasing contract 0.00 0.23 0.20 0.17
Mostly foreign tourists 0.63 0.52 0.18 0.31
Mostly leisure tourists 0.81 0.80 0.72 0.71
Establishment implements strategic plans 0.94 0.87 0.77 0.62
Period since the last important renovation of the h otel 2.67 4.11 4.37 6.53
Number of quality certifications 3.74 1.82 0.92 0.22
Number of environmental quality certifications 1.00 0.46 0.00 0.00
Table 2.
Economic variables and strategic groups Mean values
Variables Proactive Accommodative Defensive Reactive
Labour productivity (€) 35929.36 33976.28 32861.94 29386.73
Average wage per worker (€) 24158.87 23794.89 23616.46 21527.69
Mean yearly occupancy of rooms (%) 73.42 66.92 66.82 62.63
Gross operating income (€) per room 44307.71 31210.25 27522.02 22435.37
GVA (€) per room 18527.19 13453.41 12992.67 12128.47
Labour unit cost per establishment 0.74 0.71 0.75 0.79
GOS (€) per room 5130.3 4286.91 3391.86 3063.59